Ladder Bottom
This is a five-candlestick pattern that starts with three strong black candles. The downtrend continues with the fourth lower close. The next day opens higher and closes much higher than the previous day or two. This could imply a bullish reversal.
Recognition criteria:
The market is characterized by a prevailing downtrend.
Three strong black candles occur much like the Three Black Crows pattern.
The fourth black candle also closes lower but has a long upper shadow.
The fifth day is a strong white candle with an open above the previous day's body.
The first three days of the Bullish Ladder Bottom are strong black candles with consecutive lower opens and lower closes. The fourth day is a short black candle, but opens higher and trades higher, leaving a long upper shadow, then closes to create a new low. The fifth day is a strong white candle that gaps the body with the fourth day.
If the volume is high on the last day, a trend reversal has probably occurred. However, confirmation will still be required the next day.